Hot Creek Capital LLC

Item 5: Fees and Compensation
Management Fees

Hot Creek receives management fees as compensation for performing advisory services to the Fund
equal to 1.0% per annum (0.25 percent quarterly) of the net assets of the Fund. The Management Fee
is calculated and paid quarterly in advance and is charged to the capital accounts of each Limited
Partner based on the relative balances in the Limited Partners’ capital accounts on the first day of
each calendar quarter before taking into account estimated accrued Incentive Allocations. Any
investor admitted on a day other than the first day of the calendar quarter is charged a pro rata
portion of the management fee corresponding to the number of months remaining in the quarter.
Similarly, in the event of any withdrawal by an investor as of a date other than the last day of the
calendar quarter, the investor’s capital account would be credited with a pro rata portion of the
management fee corresponding to the number of months remaining in the quarter.

Although the management fee is not negotiable, Hot Creek, in its sole discretion, may without the
consent of the other Fund investors, waive or reduce the management fee for Limited Partners,
including for Limited Partners that are principals, employees or affiliates and/or for certain large or
other investors it deems to be strategic.

In the case of a termination of our investment management agreement with the Fund prior to the end
of a calendar quarter, the management fees for such period would be pro-rated to the date of such
termination with any excess payment refunded to the Fund and credited to investors’ capital accounts.

In addition, investors in the Fund are subject to an incentive allocation or fee which is payable to Hot
Creek. Please refer to Item 6 below for an explanation of this fee.

Other Fees

Clients are responsible for all costs and expenses incurred in connection with the investments in
their accounts, including brokerage commissions; clearing fees; fees, interest and other costs in
connection with margin accounts or other borrowings; borrowing charges on securities sold short;
custodial fees; Fund administration fees, and bank service fees. To the extent that the Fund invests
in ETFs, the account will be subject indirectly to a second level of fees and expenses charged by the
ETF. No other fees are charged to the Fund or Limited Partners.

Potential investors should review the offering documents of the Fund for a complete disclosure of
investor fees and expenses.

Item 7: Types of Clients
Hot Creek provides investment management services to Hot Creek Investors, L.P

Each investor in the Fund must be an “accredited investors” (as defined in Regulation D under the
federal Securities Act of 1933) and a “qualified client” (as provided in Rule 205-3(a) under the
Investment Advisers Act of 1940, as amended). An individual is an accredited investor if he or she:

     (i) has a net worth in excess of $1,000,000 excluding the value of the individual’s primary
          residence and any indebtedness secured by such residence up to its fair market value
          (indebtedness secured by such residence in excess of the fair market value of such residence,
          and any increase in the amount of such indebtedness within 60 days before the Interest is
          purchased, other than an increase as a result of the acquisition of the residence, shall be
          included as a liability) or
     (ii) had an individual income in excess of $200,000 (or joint income with his or her spouse in
          excess of $300,000) in each of the preceding two years and has a reasonable expectation of
          reaching the same level of income in the current year.
     (iii) a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose
          purchase a sophisticated person makes.

In addition, Fund investors who pay a performance fee must also meet the definition of
“qualified client”:

    a. Has a net worth (together, in the case of a natural person, with assets held jointly with
       a spouse) of more than $2,200,000. For purposes of calculating a natural person's net
       worth:
           (a) The person's primary residence must not be included as an asset;
           (b) Indebtedness secured by the person's primary residence, up to the estimated
               fair market value of the primary residence at the time the investment advisory
               contract is entered into may not be included as a liability (except that if the
               amount of such indebtedness outstanding at the time of calculation exceeds
               the amount outstanding 60 days before such time, other than as a result of the
               acquisition of the primary residence, the amount of such excess must be
               included as a liability); and

            (c) Indebtedness that is secured by the person's primary residence in excess of the
                estimated fair market value of the residence must be included as a liability; or
            (d) A natural person who has assets under management with Hot Creek in excess
               of $1,100,000.

The minimum initial investment or commitment of $500,000 is generally required. However, Hot
Creek has the discretion to decrease or waive the minimum initial investment or commitment as long
as the investor qualifies based on all other suitability and regulatory requirements applicable to the
Fund.